As Passed by the Senate 1
123rd General Assembly 4
Regular Session Sub. H. B. No. 27 5
1999-2000 6
REPRESENTATIVES GRENDELL-METELSKY-BRITTON-HARTNETT-PETERSON- 8
HOLLISTER-JOLIVETTE-HAINES-BEATTY-OLMAN-DePIERO-SCHULER- 9
BARRETT-PRINGLE-BUCHY-ROBERTS-BARNES-SENATORS BLESSING- 10
GARDNER-WATTS-CARNES-SCHAFRATH-SPADA-PRENTISS 11
_________________________________________________________________ 13
A B I L L
To amend sections 5709.61, 5709.62, 5709.63, 16
5709.631, and 5723.06 of the Revised Code to
specify that certain places of business where 17
electricity is generated are facilities eligible 18
for tax abatements under the enterprise zone 19
program, to prohibit sales of forfeited lands to
delinquent property taxpayers, and to permit, for 21
a limited time, the abatement of unpaid property
taxes, penalties, and interest owed on property 23
that would have been tax exempt except for a
failure to comply with certain tax exemption 24
procedures. 25
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 27
Section 1. That sections 5709.61, 5709.62, 5709.63, 30
5709.631, and 5723.06 of the Revised Code be amended to read as 31
follows:
Sec. 5709.61. As used in sections 5709.61 to 5709.69 of 40
the Revised Code: 41
(A) "Enterprise zone" or "zone" means any of the 43
following: 44
(1) An area with a single continuous boundary designated 46
in the manner set forth in section 5709.62 or 5709.63 of the 47
Revised Code and certified by the director of development as 48
2
having a population of at least four thousand according to the 49
best and most recent data available to the director and having at 50
least two of the following characteristics: 51
(a) It is located in a municipal corporation defined by 53
the United States office of management and budget as a central 54
city of a metropolitan statistical area; 55
(b) It is located in a county designated as being in the 57
"Appalachian region" under the "Appalachian Regional Development 58
Act of 1965," 79 Stat. 5, 40 App. U.S.C.A. 403, as amended; 59
(c) Its average rate of unemployment, during the most 61
recent twelve-month period for which data are available, is equal 62
to at least one hundred twenty-five per cent of the average rate 63
of unemployment for the state of Ohio for the same period; 64
(d) There is a prevalence of commercial or industrial 66
structures in the area that are vacant or demolished, or are 67
vacant and the taxes charged thereon are delinquent, and 68
certification of the area as an enterprise zone would likely 69
result in the reduction of the rate of vacant or demolished 70
structures or the rate of tax delinquency in the area; 71
(e) The population of all census tracts in the area, 73
according to the federal census of 1990, decreased by at least 74
ten per cent between the years 1970 and 1990; 75
(f) At least fifty-one per cent of the residents of the 77
area have incomes of less than eighty per cent of the median 78
income of residents of the municipal corporation or municipal 79
corporations in which the area is located, as determined in the 80
same manner specified under section 119(b) of the "Housing and 81
Community Development Act of 1974," 88 Stat. 633, 42 U.S.C. 5318, 82
as amended; 83
(g) The area contains structures previously used for 85
industrial purposes but currently not so used due to age, 86
obsolescence, deterioration, relocation of the former occupant's 87
operations, or cessation of operations resulting from unfavorable 88
economic conditions either generally or in a specific economic 89
3
sector; 90
(h) An area IT IS located within one or more adjacent 92
city, local, or exempted village school districts, the 93
income-weighted tax capacity of each of which is less than 94
seventy per cent of the average of the income-weighted tax 95
capacity of all city, local, or exempted village school districts 96
in the state according to the most recent data available to the 97
director from the department of taxation. 98
The director of development shall adopt rules in accordance 100
with Chapter 119. of the Revised Code establishing conditions 101
constituting the characteristics described in divisions 102
(A)(1)(d), (g), and (h) of this section. 103
If an area could not be certified as an enterprise zone 105
unless it satisfied division (A)(1)(g) of this section, the 106
legislative authority may enter into agreements in that zone 107
under section 5709.62, 5709.63, or 5709.632 of the Revised Code 108
only if such agreements result in the development of the 109
facilities described in that division, the parcel of land on 110
which such facilities are situated, or adjacent parcels. The 111
director of development annually shall review all agreements in 112
such zones to determine whether the agreements have resulted in 113
such development; if the director determines that the agreements 114
have not resulted in such development, the director immediately 115
shall revoke certification of the zone and notify the legislative 116
authority of such revocation. Any agreements entered into prior 117
to revocation under this paragraph shall continue in effect for 118
the period provided in the agreement. 119
(2) An area with a single continuous boundary designated 121
in the manner set forth in section 5709.63 of the Revised Code 122
and certified by the director of development as: 123
(a) Being located within a county that contains a 125
population of three hundred thousand or less; 126
(b) Having a population of at least one thousand according 128
to the best and most recent data available to the director; 129
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(c) Having at least two of the characteristics described 131
in divisions (A)(1)(b) to (h) of this section. 132
(3) An area with a single continuous boundary designated 134
in the manner set forth under division (A)(1) of section 5709.632 135
of the Revised Code and certified by the director of development 136
as having a population of at least four thousand, or under 137
division (A)(2) of that section and certified as having a 138
population of at least one thousand, according to the best and 139
most recent data available to the director. 140
(B) "Enterprise" means any form of business organization 142
including, but not limited to, any partnership, sole 143
proprietorship, or corporation, including an S corporation as 144
defined in section 1361 of the Internal Revenue Code and any 145
corporation that is majority work-owned either directly through 146
the ownership of stock or indirectly through participation in an 147
employee stock ownership plan. 148
(C) "Facility" means an enterprise's place of business in 150
a zone, including land, buildings, machinery, equipment, and 151
other materials, except inventory, used in business. "Facility" 152
INCLUDES LAND, BUILDINGS, MACHINERY, PRODUCTION AND STATION 153
EQUIPMENT, OTHER EQUIPMENT, AND OTHER MATERIALS, EXCEPT 155
INVENTORY, USED IN BUSINESS TO GENERATE ELECTRICITY THAT IS 156
DESIGNED AND INTENDED TO OPERATE DURING PEAK LOAD PERIODS AND TO
GENERATE ELECTRICITY DURING NO MORE THAN FOUR THOUSAND THREE 157
HUNDRED FIFTY HOURS IN A CALENDAR YEAR, PROVIDED THAT, FOR 158
PURPOSES OF SECTIONS 5709.61 TO 5709.69 OF THE REVISED CODE, THE 159
VALUE OF THE PROPERTY AT SUCH A FACILITY SHALL BE REDUCED BY THE 161
VALUE, IF ANY, THAT IS NOT APPORTIONED UNDER SECTION 5727.15 OF 162
THE REVISED CODE TO THE TAXING DISTRICT IN WHICH THE FACILITY IS 163
PHYSICALLY LOCATED. IN THE CASE OF SUCH A FACILITY THAT IS 164
PHYSICALLY LOCATED IN TWO ADJACENT TAXING DISTRICTS, THE PROPERTY 165
LOCATED IN EACH TAXING DISTRICT CONSTITUTES A SEPARATE FACILITY. 167
"FACILITY" does not include any portion of an enterprise's 169
place of business used primarily for making retail sales unless 171
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the place of business is located in an impacted city as defined 172
in section 1728.01 of the Revised Code. 173
(D) "Vacant facility" means a facility that has been 175
vacant for at least ninety days immediately preceding the date on 176
which an agreement is entered INTO under section 5709.62 or 177
5709.63 of the Revised Code. 178
(E) "Expand" means to make expenditures to add land, 180
buildings, machinery, equipment, or other materials, except 181
inventory, to a facility that equal at least ten per cent of the 182
market value of the facility prior to such expenditures, as 183
determined for the purposes of local property taxation. 184
(F) "Renovate" means to make expenditures to alter or 186
repair a facility that equal at least fifty per cent of the 187
market value of the facility prior to such expenditures, as 188
determined for the purposes of local property taxation. 189
(G) "Occupy" means to make expenditures to alter or repair 191
a vacant facility equal to at least twenty per cent of the market 192
value of the facility prior to such expenditures, as determined 193
for the purposes of local property taxation. 194
(H) "Project site" means all or any part of a facility 196
that is newly constructed, expanded, renovated, or occupied by an 197
enterprise. 198
(I) "Project" means any undertaking by an enterprise to 200
establish a facility or to improve a project site by expansion, 201
renovation, or occupancy. 202
(J) "Position" means the position of one full-time 204
employee performing a particular set of tasks and duties. 205
(K) "Full-time employee" means an individual who is 207
employed for consideration by an enterprise for at least 208
thirty-five hours a week, or who renders any other standard of 209
service generally accepted by custom or specified by contract as 210
full-time employment. 211
(L) "New employee" means a full-time employee first 213
employed by an enterprise at a facility that is a project site 214
6
after the enterprise enters an agreement under section 5709.62 or 215
5709.63 of the Revised Code. "New employee" does not include an 216
employee if, immediately prior to being employed by the 217
enterprise, the employee was employed by an enterprise that is a 218
related member or predecessor enterprise of that enterprise. 219
(M) "Unemployed person" means any person who is totally 221
unemployed in this state, as that term is defined in division (M) 222
of section 4141.01 of the Revised Code, for at least ten 223
consecutive weeks immediately preceding that person's employment 225
at a facility that is a project site, or who is so unemployed for 226
at least twenty-six of the fifty-two weeks immediately preceding 227
that person's employment at such a facility. 229
(N) "JTPA eligible employee" means any individual who is 231
eligible for employment or training under the "Job Training 232
Partnership Act," 96 Stat. 1324 (1982), 29 U.S.C. 1501, as 233
amended.
(O) "First used in business" means that the property 235
referred to has not been used in business in this state by the 236
enterprise that owns it, or by an enterprise that is a related 237
member or predecessor enterprise of such an enterprise, other 238
than as inventory, prior to being used in business at a facility 239
as the result of a project. 240
(P) "Training program" means any noncredit training 242
program or course of study that is offered by any state college 243
or university; university branch district; community college; 244
technical college; nonprofit college or university certified 245
under section 1713.02 of the Revised Code; school district; joint 246
vocational school district; school registered and authorized to 247
offer programs under section 3332.05 of the Revised Code; an 248
entity administering any federal, state, or local adult education 249
and training program; or any enterprise; and that meets all of 250
the following requirements: 251
(1) It is approved by the director of development; 253
(2) It is established or operated to satisfy the need of a 255
7
particular industry or enterprise for skilled or semi-skilled 256
employees; 257
(3) An individual is required to complete the course or 259
program before filling a position at a project site. 260
(Q) "Development" means to engage in the process of 262
clearing and grading land, making, installing, or constructing 263
water distribution systems, sewers, sewage collection systems, 264
steam, gas, and electric lines, roads, curbs, gutters, sidewalks, 265
storm drainage facilities, and construction of other facilities 266
or buildings equal to at least fifty per cent of the market value 267
of the facility prior to the expenditures, as determined for the 268
purposes of local property taxation. 269
(R) "Large manufacturing facility" means a single Ohio 271
facility that employed an average of at least one thousand 272
individuals during the five calendar years preceding an agreement 274
authorized under division (C)(3) of section 5709.62 or division 275
(B)(2) of section 5709.63 of the Revised Code. For purposes of
this division, both of the following apply: 276
(1) A single Ohio manufacturing facility employed an 279
average of at least one thousand individuals during the five 280
calendar years preceding entering into such an agreement if 281
one-fifth of the sum of the number of employees employed on the 282
highest employment day during each of the five calendar years 283
equals or exceeds one thousand. 284
(2) The highest employment day is the day or days during a 287
calendar year on which the number of employees employed at a
single Ohio manufacturing facility was greater than on any other 289
day during the calendar year.
(S) "Business cycle" means the cycle of business activity 291
usually regarded as passing through alternating stages of 292
prosperity and depression. 293
(T) "Making retail sales" means the effecting of 295
transactions wherein one party is obligated to pay the price and 296
the other party is obligated to provide a service or to transfer 297
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title to or possession of the item sold. 298
(U) "Environmentally contaminated" means that hazardous 300
substances exist at a facility under conditions that have caused 301
or would cause the facility to be identified as contaminated by 302
the state or federal environmental protection agency. These may 303
include facilities located at sites identified in the master 304
sites list or similar database maintained by the state 305
environmental protection agency if the sites have been 306
investigated by the agency and found to be contaminated. 307
(V) "Remediate" means to make expenditures to clean up an 309
environmentally contaminated facility so that it is no longer 310
environmentally contaminated that equal at least ten per cent of 311
the real property market value of the facility prior to such 312
expenditures as determined for the purposes of property taxation. 313
(W) "Related member" has the same meaning as defined in 315
section 5733.042 of the Revised Code without regard to division 316
(B) of that section, except that it is used with respect to an 317
enterprise rather than a taxpayer. 318
(X) "Predecessor enterprise" means an enterprise from 320
which the assets or equity of another enterprise has been 321
transferred, which transfer resulted in the full or partial 322
nonrecognition of gain or loss, or resulted in a carryover basis, 323
both as determined by rule adopted by the tax commissioner. 324
(Y) "Successor enterprise" means an enterprise to which 326
the assets or equity of another enterprise has been transferred, 327
which transfer resulted in the full or partial nonrecognition of 328
gain or loss, or resulted in a carryover basis, both as 329
determined by rule adopted by the tax commissioner. 330
Sec. 5709.62. (A) In any municipal corporation that is 339
defined by the United States office of management and budget as a 340
central city of a metropolitan statistical area, the legislative 341
authority of the municipal corporation may designate one or more 342
areas within its municipal corporation as proposed enterprise 343
zones. Upon designating an area, the legislative authority shall 344
9
petition the director of development for certification of the 345
area as having the characteristics set forth in division (A)(1) 346
of section 5709.61 of the Revised Code as amended by Substitute 347
Senate Bill No. 19 of the 120th general assembly. Except as 348
otherwise provided in division (E) of this section, on and after 349
July 1, 1994, legislative authorities shall not enter into 350
agreements under this section unless the legislative authority 351
has petitioned the director and the director has certified the 352
zone under this section as amended by that act; however, all 353
agreements entered into under this section as it existed prior to 354
July 1, 1994, and the incentives granted under those agreements 355
shall remain in effect for the period agreed to under those 356
agreements. Within sixty days after receiving such a petition, 357
the director shall determine whether the area has the 358
characteristics set forth in division (A)(1) of section 5709.61 359
of the Revised Code, and shall forward the findings to the 361
legislative authority of the municipal corporation. If the 362
director certifies the area as having those characteristics, and 363
thereby certifies it as a zone, the legislative authority may 364
enter into an agreement with an enterprise under division (C) of 365
this section. 366
(B) Any enterprise that wishes to enter into an agreement 368
with a municipal corporation under division (C) of this section 369
shall submit a proposal to the legislative authority of the 370
municipal corporation on a form prescribed by the director of 371
development, together with the application fee established under 372
section 5709.68 of the Revised Code. The form shall require the 373
following information: 374
(1) An estimate of the number of new employees whom the 376
enterprise intends to hire, or of the number of employees whom 377
the enterprise intends to retain, within the zone at a facility 378
that is a project site, and an estimate of the amount of payroll 379
of the enterprise attributable to these employees; 380
(2) An estimate of the amount to be invested by the 382
10
enterprise to establish, expand, renovate, or occupy a facility, 383
including investment in new buildings, additions or improvements 384
to existing buildings, machinery, equipment, furniture, fixtures, 385
and inventory; 386
(3) A listing of the enterprise's current investment, if 388
any, in a facility as of the date of the proposal's submission. 389
The enterprise shall review and update the listings 391
required under this division to reflect material changes, and any 392
agreement entered into under division (C) of this section shall 393
set forth final estimates and listings as of the time the 394
agreement is entered into. The legislative authority may, on a 395
separate form and at any time, require any additional information 396
necessary to determine whether an enterprise is in compliance 397
with an agreement and to collect the information required to be 398
reported under section 5709.68 of the Revised Code. 399
(C) Upon receipt and investigation of a proposal under 401
division (B) of this section, if the legislative authority finds 402
that the enterprise submitting the proposal is qualified by 403
financial responsibility and business experience to create and 404
preserve employment opportunities in the zone and improve the 405
economic climate of the municipal corporation, the legislative 406
authority, on or before June 30, 1999, may do one of the 409
following:
(1) Enter into an agreement with the enterprise under 411
which the enterprise agrees to establish, expand, renovate, or 412
occupy a facility and hire new employees, or preserve employment 413
opportunities for existing employees, in return for one or more 414
of the following incentives: 415
(a) Exemption for a specified number of years, not to 417
exceed ten, of a specified portion, up to seventy-five per cent, 418
of the assessed value of tangible personal property first used in 419
business at the project site as a result of the agreement. An 420
exemption granted pursuant to this division applies to inventory 421
required to be listed pursuant to sections 5711.15 and 5711.16 of 422
11
the Revised Code, except that, in the instance of an expansion or 423
other situations in which an enterprise was in business at the 424
facility prior to the establishment of the zone, the inventory 425
which THAT is exempt is that amount or value of inventory in 426
excess of the amount or value of inventory required to be listed 428
in the personal property tax return of the enterprise in the 429
return for the tax year in which the agreement is entered into. 430
(b) Exemption for a specified number of years, not to 432
exceed ten, of a specified portion, up to seventy-five per cent, 433
of the increase in the assessed valuation of real property 434
constituting the project site subsequent to formal approval of 435
the agreement by the legislative authority; 436
(c) Provision for a specified number of years, not to 438
exceed ten, of any optional services or assistance that the 439
municipal corporation is authorized to provide with regard to the 440
project site. 441
(2) An ENTER INTO AN agreement under which the enterprise 443
agrees to remediate an environmentally contaminated facility, to 445
spend an amount equal to at least two hundred fifty per cent of 446
the true value in money of the real property of the facility 447
prior to remediation as determined for the purposes of property 448
taxation to establish, expand, renovate, or occupy the remediated 449
facility, and to hire new employees or preserve employment 450
opportunities for existing employees at the remediated facility, 451
in return for one or more of the following incentives: 452
(a) Exemption for a specified number of years, not to 454
exceed ten, of a specified portion, not to exceed fifty per cent, 455
of the assessed valuation of the real property of the facility 456
prior to remediation; 457
(b) Exemption for a specified number of years, not to 459
exceed ten, of a specified portion, not to exceed one hundred per 460
cent, of the increase in the assessed valuation of the real 461
property of the facility during or after remediation; 462
(c) The incentive under division (C)(1)(a) of this 464
12
section, except that the percentage of the assessed value of such 465
property exempted from taxation shall not exceed one hundred per 466
cent; 467
(d) The incentive under division (C)(1)(c) of this 469
section. 470
(3) Enter into an agreement with an enterprise that plans 472
to purchase and operate a large manufacturing facility that has 473
ceased operation or announced its intention to cease operation, 474
in return for exemption for a specified number of years, not to 475
exceed ten, of a specified portion, up to one hundred per cent, 476
of the assessed value of tangible personal property used in 477
business at the project site as a result of the agreement, or of 478
the assessed valuation of real property constituting the project 479
site, or both. 480
(D)(1) Notwithstanding divisions (C)(1)(a) and (b) of this 482
section, the portion of the assessed value of tangible personal 483
property or of the increase in the assessed valuation of real 484
property exempted from taxation under those divisions may exceed 485
seventy-five per cent in any year for which that portion is 486
exempted if the average percentage exempted for all years in 487
which the agreement is in effect does not exceed sixty per cent, 488
or if the board of education of the city, local, or exempted 489
village school district within the territory of which the 490
property is or will be located approves a percentage in excess of 491
seventy-five per cent. For the purpose of obtaining such 492
approval, the legislative authority shall deliver to the board of 493
education a notice not later than forty-five days prior to 494
approving the agreement, excluding Saturdays, Sundays, and legal 496
holidays as defined in section 1.14 of the Revised Code. The
notice shall state the percentage to be exempted, an estimate of 498
the true value of the property to be exempted, and the number of 499
years the property is to be exempted. The board of education, by 500
resolution adopted by a majority of the board, shall approve or 501
disapprove the agreement and certify a copy of the resolution to 502
13
the legislative authority not later than fourteen days prior to 503
the date stipulated by the legislative authority as the date upon 504
which approval of the agreement is to be formally considered by 505
the legislative authority. The board of education may include in 506
the resolution conditions under which the board would approve the 507
agreement, including the execution of an agreement to compensate 508
the school district under division (B) of section 5709.82 of the 509
Revised Code. The legislative authority may approve the 510
agreement at any time after the board of education certifies its 511
resolution approving the agreement to the legislative authority, 512
or, if the board approves the agreement conditionally, at any 513
time after the conditions are agreed to by the board and the 514
legislative authority.
If a board of education has adopted a resolution waiving 516
its right to approve agreements and the resolution remains in 518
effect, approval of an agreement by the board is not required 519
under this division. If a board of education has adopted a 520
resolution allowing a legislative authority to deliver the notice 521
required under this division fewer than forty-five business days 522
prior to the legislative authority's approval of the agreement, 523
the legislative authority shall deliver the notice to the board 524
not later than the number of days prior to such approval as 525
prescribed by the board in its resolution. If a board of 526
education adopts a resolution waiving its right to approve 527
agreements or shortening the notification period, the board shall 528
certify a copy of the resolution to the legislative authority. 529
If the board of education rescinds such a resolution, it shall 530
certify notice of the rescission to the legislative authority. 531
(2) The legislative authority shall comply with section 533
5709.83 of the Revised Code unless the board of education has 536
adopted a resolution under that section waiving its right to 537
receive such notice.
(E) This division applies to zones certified by the 539
director of development under this section prior to July 22, 541
14
1994. 542
On or before June 30, 1999, the legislative authority that 546
designated a zone to which this division applies may enter into 547
an agreement with an enterprise if the legislative authority
makes the finding required under that division and determines 548
that the enterprise satisfies one of the criteria described in 549
divisions (E)(1) to (5) of this section: 550
(1) The enterprise currently has no operations in this 552
state and, subject to approval of the agreement, intends to 553
establish operations in the zone; 554
(2) The enterprise currently has operations in this state 556
and, subject to approval of the agreement, intends to establish 557
operations at a new location in the zone that would not result in 558
a reduction in the number of employee positions at any of the 559
enterprise's other locations in this state; 560
(3) The enterprise, subject to approval of the agreement, 562
intends to relocate operations, currently located in another 563
state, to the zone; 564
(4) The enterprise, subject to approval of the agreement, 566
intends to expand operations at an existing site in the zone that 567
the enterprise currently operates; 568
(5) The enterprise, subject to approval of the agreement, 570
intends to relocate operations, currently located in this state, 571
to the zone, and the director of development has issued a waiver 572
for the enterprise under division (B) of section 5709.633 of the 573
Revised Code. 574
The agreement shall require the enterprise to agree to 576
establish, expand, renovate, or occupy a facility in the zone and 577
hire new employees, or preserve employment opportunities for 578
existing employees, in return for one or more of the incentives 579
described in division (C) of this section. 580
(F) All agreements entered into under this section shall 582
be in the form prescribed under section 5709.631 of the Revised 583
Code. After an agreement is entered into under this division, if 584
15
the legislative authority revokes its designation of a zone, or 585
if the director of development revokes the zone's certification, 586
any entitlements granted under the agreement shall continue for 587
the number of years specified in the agreement. 588
(G) Except as otherwise provided in this division, an 590
agreement entered into under this section shall require that the 591
enterprise pay an annual fee equal to the greater of one per cent 592
of the dollar value of incentives offered under the agreement or 593
five hundred dollars; provided, however, that if the value of the 594
incentives exceeds two hundred fifty thousand dollars, the fee 595
shall not exceed two thousand five hundred dollars. The fee 596
shall be payable to the legislative authority once per year for 597
each year the agreement is effective on the days and in the form 598
specified in the agreement. Fees paid shall be deposited in a 599
special fund created for such purpose by the legislative 600
authority and shall be used by the legislative authority 601
exclusively for the purpose of complying with section 5709.68 of 602
the Revised Code and by the tax incentive review council created 603
under section 5709.85 of the Revised Code exclusively for the 604
purposes of performing the duties prescribed under that section. 605
The legislative authority may waive or reduce the amount of the 606
fee charged against an enterprise, but such a waiver or reduction 607
does not affect the obligations of the legislative authority or 608
the tax incentive review council to comply with section 5709.68 609
or 5709.85 of the Revised Code. 610
(H) When an agreement is entered into pursuant to this 612
section, the legislative authority authorizing the agreement 613
shall forward a copy of the agreement to the director of 614
development and to the tax commissioner within fifteen days after 615
the agreement is entered into. 616
(I) After an agreement is entered into, the enterprise 618
shall file with each personal property tax return required to be 619
filed, OR ANNUAL REPORT REQUIRED TO BE FILED UNDER SECTION 620
5727.08 OF THE REVISED CODE, while the agreement is in effect, an 622
16
informational return, on a form prescribed by the tax 623
commissioner for that purpose, setting forth separately the 624
property, and related costs and values, exempted from taxation 625
under the agreement.
(J) Enterprises may agree to give preference to residents 627
of the zone within which the agreement applies relative to 628
residents of this state who do not reside in the zone when hiring 629
new employees under the agreement. 630
(K) An agreement entered into under this section may 632
include a provision requiring the enterprise to create one or 633
more temporary internship positions for students enrolled in a 634
course of study at a school or other educational institution in 635
the vicinity, and to create a scholarship or provide another form 636
of educational financial assistance for students holding such a 637
position in exchange for the student's commitment to work for the 638
enterprise at the completion of the internship. 639
Sec. 5709.63. (A) With the consent of the legislative 648
authority of each affected municipal corporation or of a board of 649
township trustees, a board of county commissioners may, in the 650
manner set forth in section 5709.62 of the Revised Code, 651
designate one or more areas in one or more municipal corporations 652
or in unincorporated areas of the county as proposed enterprise 654
zones. A board of county commissioners may designate no more 655
than one area within a township, or within adjacent townships, as 656
a proposed enterprise zone. The board shall petition the 657
director of development for certification of the area as having 658
the characteristics set forth in division (A)(1) or (2) of
section 5709.61 of the Revised Code as amended by Substitute 659
Senate Bill No. 19 of the 120th general assembly. Except as 660
otherwise provided in division (D) of this section, on and after 661
July 1, 1994, boards of county commissioners shall not enter into 662
agreements under this section unless the board has petitioned the 663
director and the director has certified the zone under this
section as amended by that act; however, all agreements entered 664
17
into under this section as it existed prior to July 1, 1994, and 665
the incentives granted under those agreements shall remain in 666
effect for the period agreed to under those agreements. The 667
director shall make the determination in the manner provided 668
under section 5709.62 of the Revised Code. Any enterprise 669
wishing to enter into an agreement with the board under division 670
(B) or (D) of this section shall submit a proposal to the board 672
on the form and accompanied by the application fee prescribed
under division (B) of section 5709.62 of the Revised Code. The 674
enterprise shall review and update the estimates and listings 675
required by the form in the manner required under that division. 676
The board may, on a separate form and at any time, require any 677
additional information necessary to determine whether an 678
enterprise is in compliance with an agreement and to collect the 679
information required to be reported under section 5709.68 of the 680
Revised Code.
(B) If the board of county commissioners finds that an 682
enterprise submitting a proposal is qualified by financial 683
responsibility and business experience to create and preserve 684
employment opportunities in the zone and to improve the economic 685
climate of the municipal corporation or municipal corporations or 686
the unincorporated areas in which the zone is located and to 687
which the proposal applies, the board, on or before June 30, 688
1999, and with the consent of the legislative authority of each 691
affected municipal corporation or of the board of township 692
trustees may do either of the following: 693
(1) Enter into an agreement with the enterprise under 695
which the enterprise agrees to establish, expand, renovate, or 696
occupy a facility in the zone and hire new employees, or preserve 697
employment opportunities for existing employees, in return for 698
the following incentives: 699
(a) When the facility is located in a municipal 701
corporation, the board may enter into an agreement for one or 702
more of the incentives provided in division (C) of section 703
18
5709.62 of the Revised Code, subject to division (D) of that 704
section;
(b) When the facility is located in an unincorporated 706
area, the board may enter into an agreement for one or more of 707
the following incentives: 708
(i) Exemption for a specified number of years, not to 710
exceed ten, of a specified portion, up to sixty per cent, of the 712
assessed value of tangible personal property first used in
business at a project site as a result of the agreement. An 714
exemption granted pursuant to this division applies to inventory 715
required to be listed pursuant to sections 5711.15 and 5711.16 of 716
the Revised Code, except, in the instance of an expansion or 717
other situations in which an enterprise was in business at the 718
facility prior to the establishment of the zone, the inventory 719
which THAT is exempt is that amount or value of inventory in 721
excess of the amount or value of inventory required to be listed 722
in the personal property tax return of the enterprise in the 723
return for the tax year in which the agreement is entered into. 724
(ii) Exemption for a specified number of years, not to 726
exceed ten, of a specified portion, up to sixty per cent, of the 728
increase in the assessed valuation of real property constituting
the project site subsequent to formal approval of the agreement 729
by the board;
(iii) Provision for a specified number of years, not to 731
exceed ten, of any optional services or assistance the board is 732
authorized to provide with regard to the project site; 733
(iv) The incentive described in division (C)(2) of section 735
5709.62 of the Revised Code. 736
(2) Enter into an agreement with an enterprise that plans 738
to purchase and operate a large manufacturing facility that has 739
ceased operation or has announced its intention to cease 740
operation, in return for exemption for a specified number of 741
years, not to exceed ten, of a specified portion, up to one 742
hundred per cent, of tangible personal property used in business 743
19
at the project site as a result of the agreement, or of real 744
property constituting the project site, or both. 745
(C)(1) Notwithstanding divisions (B)(1)(b)(i) and (ii) of 747
this section, the portion of the assessed value of tangible 750
personal property or of the increase in the assessed valuation of 751
real property exempted from taxation under those divisions may 752
exceed sixty per cent in any year for which that portion is
exempted if the average percentage exempted for all years in 753
which the agreement is in effect does not exceed fifty per cent, 754
or if the board of education of the city, local, or exempted 755
village school district within the territory of which the 756
property is or will be located approves a percentage in excess of 757
sixty per cent. For the purpose of obtaining such approval, the
board of commissioners shall deliver to the board of education a 758
notice not later than forty-five days prior to approving the 760
agreement, excluding Saturdays, Sundays, and legal holidays as 762
defined in section 1.14 of the Revised Code. The notice shall 764
state the percentage to be exempted, an estimate of the true 766
value of the property to be exempted, and the number of years the 767
property is to be exempted. The board of education, by 768
resolution adopted by a majority of the board, shall approve or 769
disapprove the agreement and certify a copy of the resolution to
the board of commissioners not later than fourteen days prior to 770
the date stipulated by the board of commissioners as the date 771
upon which approval of the agreement is to be formally considered 772
by the board of commissioners. The board of education may 773
include in the resolution conditions under which the board would
approve the agreement, including the execution of an agreement to 774
compensate the school district under division (B) of section 775
5709.82 of the Revised Code. The board of county commissioners 777
may approve the agreement at any time after the board of 778
education certifies its resolution approving the agreement to the 779
board of county commissioners, or, if the board of education 780
approves the agreement conditionally, at any time after the 781
20
conditions are agreed to by the board of education and the board 782
of county commissioners.
If a board of education has adopted a resolution waiving 784
its right to approve agreements and the resolution remains in 786
effect, approval of an agreement by the board of education is not 787
required under division (C) of this section. If a board of 788
education has adopted a resolution allowing a board of county 789
commissioners to deliver the notice required under this division 790
fewer than forty-five business days prior to approval of the 792
agreement by the board of county commissioners, the board of
county commissioners shall deliver the notice to the board of 793
education not later than the number of days prior to such 795
approval as prescribed by the board of education in its 796
resolution. If a board of education adopts a resolution waiving 797
its right to approve agreements or shortening the notification 798
period, the board of education shall certify a copy of the
resolution to the board of county commissioners. If the board of 799
education rescinds such a resolution, it shall certify notice of 800
the rescission to the board of county commissioners. 801
(2) The board of county commissioners shall comply with 803
section 5709.83 of the Revised Code unless the board of education 806
has adopted a resolution under that section waiving its right to 807
receive such notice.
(D) This division applies to zones certified by the 809
director of development under this section prior to July 22, 811
1994.
On or before June 30, 1999, and with the consent of the 815
legislative authority of each affected municipal corporation or 816
board of township trustees of each affected township, the board 817
of commissioners that designated a zone to which this division 818
applies may enter into an agreement with an enterprise if the 819
board makes the finding required under that division and
determines that the enterprise satisfies one of the criteria 820
described in divisions (D)(1) to (5) of this section: 821
21
(1) The enterprise currently has no operations in this 823
state and, subject to approval of the agreement, intends to 824
establish operations in the zone;
(2) The enterprise currently has operations in this state 826
and, subject to approval of the agreement, intends to establish 827
operations at a new location in the zone that would not result in 828
a reduction in the number of employee positions at any of the 829
enterprise's other locations in this state;
(3) The enterprise, subject to approval of the agreement, 831
intends to relocate operations, currently located in another 832
state, to the zone;
(4) The enterprise, subject to approval of the agreement, 834
intends to expand operations at an existing site in the zone that 835
the enterprise currently operates; 836
(5) The enterprise, subject to approval of the agreement, 838
intends to relocate operations, currently located in this state, 839
to the zone, and the director of development has issued a waiver 840
for the enterprise under division (B) of section 5709.633 of the 841
Revised Code.
The agreement shall require the enterprise to agree to 843
establish, expand, renovate, or occupy a facility in the zone and 844
hire new employees, or preserve employment opportunities for 845
existing employees, in return for one or more of the incentives 846
described in division (B) of this section.
(E) All agreements entered into under this section shall 848
be in the form prescribed under section 5709.631 of the Revised 849
Code. After an agreement under this section is entered into, if 850
the board of county commissioners revokes its designation of the 851
zone, or if the director of development revokes the zone's 852
certification, any entitlements granted under the agreement shall
continue for the number of years specified in the agreement. 853
(F) Except as otherwise provided in this paragraph, an 855
agreement entered into under this section shall require that the 856
enterprise pay an annual fee equal to the greater of one per cent 857
22
of the dollar value of incentives offered under the agreement or 858
five hundred dollars; provided, however, that if the value of the 859
incentives exceeds two hundred fifty thousand dollars, the fee
shall not exceed two thousand five hundred dollars. The fee 860
shall be payable to the board of commissioners once per year for 861
each year the agreement is effective on the days and in the form 862
specified in the agreement. Fees paid shall be deposited in a 863
special fund created for such purpose by the board and shall be
used by the board exclusively for the purpose of complying with 864
section 5709.68 of the Revised Code and by the tax incentive 865
review council created under section 5709.85 of the Revised Code 866
exclusively for the purposes of performing the duties prescribed 867
under that section. The board may waive or reduce the amount of 868
the fee charged against an enterprise, but such waiver or
reduction does not affect the obligations of the board or the tax 869
incentive review council to comply with section 5709.68 or 870
5709.85 of the Revised Code, respectively. 871
(G) With the approval of the legislative authority of a 873
municipal corporation or the board of township trustees of a 874
township in which a zone is designated under division (A) of this 875
section, the board of county commissioners may delegate to that 876
legislative authority or board any powers and duties of the board 877
to negotiate and administer agreements with regard to that zone
under this section. 878
(H) When an agreement is entered into pursuant to this 880
section, the legislative authority authorizing the agreement 881
shall forward a copy of the agreement to the director of 882
development and to the tax commissioner within fifteen days after 883
the agreement is entered into.
(I) After an agreement is entered into, the enterprise 885
shall file with each personal property tax return required to be 886
filed, OR ANNUAL REPORT THAT IS REQUIRED TO BE FILED UNDER 887
SECTION 5727.08 OF THE REVISED CODE, while the agreement is in 888
effect, an informational return, on a form prescribed by the tax 889
23
commissioner for that purpose, setting forth separately the 890
property, and related costs and values, exempted from taxation 891
under the agreement.
(J) Enterprises may agree to give preference to residents 893
of the zone within which the agreement applies relative to 894
residents of this state who do not reside in the zone when hiring 895
new employees under the agreement.
(K) An agreement entered into under this section may 897
include a provision requiring the enterprise to create one or 898
more temporary internship positions for students enrolled in a 899
course of study at a school or other educational institution in 900
the vicinity, and to create a scholarship or provide another form 901
of educational financial assistance for students holding such a
position in exchange for the student's commitment to work for the 902
enterprise at the completion of the internship. 903
Sec. 5709.631. Each agreement entered into under sections 912
5709.62, 5709.63, and 5709.632 of the Revised Code on or after 913
April 1, 1994, shall be in writing and shall include all of the 914
information and statements prescribed by this section. Agreements 916
may include terms not prescribed by this section, but such terms 917
shall in no way derogate from the information and statements 918
prescribed by this section.
(A) Each agreement shall include the following 920
information: 921
(1) The names of all parties to the agreement; 923
(2) A description of the investments to be made by the 925
applicant enterprise or by another party at the facility whether 926
or not the investments are exempted from taxation, including 927
existing or new building size and cost thereof; the value of 928
machinery, equipment, furniture, and fixtures, including an 929
itemization of the value of machinery, equipment, furniture, and 930
fixtures used at another location in this state prior to the 931
agreement and relocated or to be relocated from that location to 932
the facility and the value of machinery, equipment, furniture, 933
24
and fixtures at the facility prior to the execution of the 934
agreement that will not be exempted from taxation; the value of 935
inventory at the facility, including an itemization of the value 936
of inventory held at another location in this state prior to the 937
agreement and relocated or to be relocated from that location to 938
the facility, and the value of inventory held at the facility 939
prior to the execution of the agreement that will not be exempted 940
from taxation; 941
(3) The scheduled starting and completion dates of 943
investments made in building, machinery, equipment, furniture, 944
fixtures, and inventory; 945
(4) Estimates of the number of employee positions to be 947
created each year of the agreement and of the number of employee 948
positions retained by the applicant enterprise due to the 949
project, itemized as to the number of full-time, part-time, 950
permanent, and temporary positions; 951
(5) Estimates of the dollar amount of payroll attributable 953
to the positions set forth in division (A)(4) of this section, 954
similarly itemized; 955
(6) The number of employee positions, if any, at the 957
project site and at any other location in the state at the time 958
the agreement is executed, itemized as to the number of 959
full-time, part-time, permanent, and temporary positions. 960
(B) Each agreement shall set forth the following 962
information and incorporate the following statements: 963
(1) A description of real property to be exempted from 965
taxation under the agreement, the percentage of the assessed 966
valuation of the real property exempted from taxation, and the 967
period for which the exemption is granted, accompanied by the 968
statement: "The exemption commences the first year for which the 969
real property would first be taxable were that property not 970
exempted from taxation. No exemption shall commence after 971
.......... (insert date) nor extend beyond .......... (insert 972
date)." The tax commissioner shall adopt rules prescribing the 973
25
form the description of such property shall assume in order to 974
ensure that the property to be exempted from taxation under the 975
agreement is distinguishable from property that is not to be 976
exempted under that agreement. 977
(2) A description of tangible personal property to be 979
exempted from taxation under the agreement, the percentage of the 980
assessed value of the tangible personal property exempted from 981
taxation, and the period for which the exemption is granted, 982
accompanied by the statement: "The exemption commences the first 983
year for which the tangible personal property would first be 984
taxable were that property not exempted from taxation. No 985
exemption shall commence after .......... (insert date) nor 986
extend beyond .......... (insert date)." The tax commissioner 987
shall adopt rules prescribing the form the description of such 988
property shall assume in order to ensure that the property to be 989
exempted from taxation under the agreement is distinguishable 990
from property that is not to be exempted under that agreement. 991
(3) ".......... (insert name of enterprise) shall pay such 993
real and tangible personal property taxes as are not exempted 994
under this agreement and are charged against such property and 995
shall file all tax reports and returns as required by law. If 996
.......... (insert name of enterprise) fails to pay such taxes or 997
file such returns and reports, all incentives granted under this 998
agreement are rescinded beginning with the year for which such 999
taxes are charged or such reports or returns are required to be 1,000
filed and thereafter." 1,001
(4) ".......... (insert name of enterprise) hereby 1,003
certifies that at the time this agreement is executed, .......... 1,004
(insert name of enterprise) does not owe any delinquent real or 1,005
tangible personal property taxes to any taxing authority of the 1,006
State of Ohio, and does not owe delinquent taxes for which 1,007
.......... (insert name of enterprise) is liable under Chapter 1,008
5727., 5733., 5735., 5739., 5741., 5743., 5747., or 5753. of the 1,009
Revised Code, or, if such delinquent taxes are owed, .......... 1,010
26
(insert name of enterprise) currently is paying the delinquent 1,011
taxes pursuant to an undertaking enforceable by the State of Ohio 1,012
or an agent or instrumentality thereof, has filed a petition in 1,013
bankruptcy under 11 U.S.C.A. 101, et seq., or such a petition has 1,014
been filed against .......... (insert name of enterprise). For 1,015
the purposes of the certification, delinquent taxes are taxes 1,016
that remain unpaid on the latest day prescribed for payment 1,017
without penalty under the chapter of the Revised Code governing 1,018
payment of those taxes." 1,019
(5) ".......... (insert name of municipal corporation or 1,021
county) shall perform such acts as are reasonably necessary or 1,022
appropriate to effect, claim, reserve, and maintain exemptions 1,023
from taxation granted under this agreement including, without 1,024
limitation, joining in the execution of all documentation and 1,025
providing any necessary certificates required in connection with 1,026
such exemptions." 1,027
(6) "If for any reason the enterprise zone designation 1,029
expires, the Director of the Ohio Department of Development 1,030
revokes certification of the zone, or .......... (insert name of 1,031
municipal corporation or county) revokes the designation of the 1,032
zone, entitlements granted under this agreement shall continue 1,033
for the number of years specified under this agreement, unless 1,034
.......... (insert name of enterprise) materially fails to 1,035
fulfill its obligations under this agreement and .......... 1,036
(insert name of municipal corporation or county) terminates or 1,037
modifies the exemptions from taxation granted under this 1,038
agreement." 1,039
(7) "If .......... (insert name of enterprise) materially 1,041
fails to fulfill its obligations under this agreement, or if 1,042
.......... (insert name of municipal corporation or county) 1,043
determines that the certification as to delinquent taxes required 1,044
by this agreement is fraudulent, .......... (insert name of 1,045
municipal corporation or county) may terminate or modify the 1,046
exemptions from taxation granted under this agreement." 1,047
27
(8) ".......... (insert name of enterprise) shall provide 1,049
to the proper tax incentive review council any information 1,050
reasonably required by the council to evaluate the enterprise's 1,051
compliance with the agreement, including returns OR ANNUAL 1,052
REPORTS filed pursuant to section 5711.02 OR 5727.08 of the Ohio 1,054
Revised Code if requested by the council." 1,056
(9) ".......... (insert name of enterprise) and .......... 1,058
(insert name of municipal corporation or county) acknowledge that 1,059
this agreement must be approved by formal action of the 1,060
legislative authority of .......... (insert name of municipal 1,061
corporation or county) as a condition for the agreement to take 1,062
effect. This agreement takes effect upon such approval." 1,063
(10) "This agreement is not transferable or assignable 1,065
without the express, written approval of .......... (insert name 1,066
of municipal corporation or county)." 1,067
(11) "Exemptions from taxation granted under this 1,069
agreement shall be revoked if it is determined that 1,070
............... (insert name of enterprise), any successor 1,071
enterprise, or any related member (as those terms are defined in 1,072
section 5709.61 of the Ohio Revised Code) has violated the 1,073
prohibition against entering into this agreement under division 1,074
(E) of section 3735.671 or section 5709.62, 5709.63, or 5709.632 1,075
of the Ohio Revised Code prior to the time prescribed by that 1,076
division or either of those sections." 1,077
The statement described in division (B)(7) of this section 1,079
may include the following statement, appended at the end of the 1,080
statement: "and may require the repayment of the amount of taxes 1,081
that would have been payable had the property not been exempted 1,082
from taxation under this agreement." 1,083
(C) If the director of development had to issue a waiver 1,085
under section 5709.633 of the Revised Code as a condition for the 1,086
agreement to be executed, the agreement shall include the 1,087
following statement: 1,088
"Continuation of this agreement is subject to the validity 1,090
28
of the circumstance upon which .......... (insert name of 1,091
enterprise) applied for, and the Director of the Ohio Department 1,092
of Development issued, the waiver pursuant to section 5709.633 of 1,093
the Ohio Revised Code. If, after formal approval of this 1,094
agreement by .......... (insert name of municipal corporation or 1,095
county), the Director or ............. (insert name of municipal 1,096
corporation or county) discovers that such a circumstance did not 1,097
exist, ........... (insert name of enterprise) shall be deemed to 1,098
have materially failed to comply with this agreement." 1,099
If the director issued a waiver on the basis of the 1,101
circumstance described in division (B)(3) of section 5709.633 of 1,102
the Ohio Revised Code, the conditions enumerated in divisions 1,103
(B)(3)(a)(i) and (ii) or divisions (B)(3)(b)(i) and (ii) of that 1,104
section shall be incorporated in the information described in 1,105
divisions (A)(2), (3), and (4) of this section. 1,106
Sec. 5723.06. (A)(1) The county auditor, on the day set 1,115
for the sale of forfeited lands provided in section 5723.04 of 1,116
the Revised Code, shall attend at the courthouse and offer for 1,117
sale the whole of each tract of land as contained in the list 1,118
provided for in such section, at public auction, to the highest 1,119
bidder, for an amount sufficient to pay the lesser of the amounts 1,120
described in divisions (A)(1) and (2) of section 5721.16 of the 1,121
Revised Code. 1,122
The county auditor shall offer each tract separately, 1,124
beginning with the first tract contained in the list. 1,126
(2) If no bid is received for any of the tracts in an 1,128
amount sufficient to pay the required amount, and no notice is 1,129
given under section 5722.04 of the Revised Code or division (B) 1,130
of this section, the auditor may offer such tract for sale 1,131
forthwith, and sell it for the best price obtainable. The county 1,132
auditor shall continue through such list and may adjourn the sale 1,133
from day to day until the county auditor has disposed of or 1,134
offered for sale each tract of land specified in the notice. The 1,136
county auditor may offer a tract of land two or more times at the 1,138
29
same sale.
(3) Notwithstanding the minimum sales price provisions of 1,140
divisions (A)(1) and (2) of this section to the contrary, 1,141
forfeited lands sold pursuant to this section shall not be sold 1,142
for IN EITHER OF THE FOLLOWING CIRCUMSTANCES: 1,143
(a) TO ANY PERSON THAT IS DELINQUENT ON REAL PROPERTY 1,145
TAXES IN THIS STATE; 1,146
(b) FOR less than the total amount of the taxes, 1,148
assessments, penalties, interest, and costs that stand charged 1,149
against the land if the highest bidder is the owner of record of 1,150
the parcel immediately prior to the judgment of foreclosure or 1,151
foreclosure and forfeiture, or a member of the following class of 1,152
parties connected to that owner: a member of that owner's 1,153
immediate family, a person with a power of attorney appointed by 1,154
that owner who subsequently transfers the parcel to the owner, a 1,155
sole proprietorship owned by that owner or a member of that 1,156
owner's immediate family, or a partnership, trust, business 1,158
trust, corporation, or association in which the owner or a member 1,159
of the owner's immediate family owns or controls directly or 1,160
indirectly more than fifty per cent. If 1,161
IF a parcel sells for less than the total amount of the 1,164
taxes, assessments, penalties, interest, and costs that stand
charged against it, the officer conducting the sale shall require 1,165
the buyer to complete an affidavit prepared by the officer 1,166
stating that the buyer is not the owner of record immediately 1,168
prior to the judgment of foreclosure or foreclosure and 1,169
forfeiture, or a member of the specified class of parties 1,170
connected to that owner, and the affidavit shall become part of 1,171
the court records of the proceeding. If the county auditor 1,172
discovers within three years after the date of the sale that a 1,175
parcel was sold to that owner or a member of the specified class 1,176
of parties connected to that owner for a price less than the 1,177
amount so described, and if the parcel is still owned by that 1,178
owner or a member of the specified class of parties connected to 1,179
30
that owner, the auditor within thirty days after such discovery 1,180
shall add the difference between that amount and the sale price 1,181
to the amount of taxes that then stand charged against the parcel 1,182
and is payable at the next succeeding date for payment of real 1,183
property taxes. As used in this paragraph, "immediate family" 1,184
means a spouse who resides in the same household and children. 1,185
(B) The director of natural resources may give written 1,187
notice to the auditor prior to the time of the sale of the 1,188
director's intention to purchase forfeited land for the state. 1,190
Such notice is a legal minimum bid at the time of the sale, and, 1,191
if no bid is received in an amount sufficient to pay the lesser 1,192
of the amounts described in divisions (A)(1) and (2) of section 1,193
5721.16 of the Revised Code, the land is deemed sold to the state 1,194
for no consideration. The director of natural resources shall 1,195
record the deed. 1,196
(C) The sale of forfeited land under this section conveys 1,198
the title to the tract or parcel of land, divested of all 1,199
liability for any taxes, assessments, charges, penalties, 1,200
interest, and costs due at the time of sale that remain after 1,201
applying the amount for which it was sold, except as otherwise 1,202
provided in division (D) of this section. 1,203
(D) If the parcel is sold for the amount described in 1,205
division (A)(2) of section 5721.16 of the Revised Code, and the 1,206
county treasurer's estimate of that amount exceeds the amount of 1,207
taxes, assessments, interest, penalties, and costs actually 1,208
payable when the deed is transferred to the purchaser, the county 1,209
auditor shall refund to the purchaser the difference between the 1,210
estimate and the amount actually payable. If the amount of 1,211
taxes, assessments, interest, penalties, and costs actually 1,212
payable when the deed is transferred to the purchaser exceeds the 1,213
county treasurer's estimate, the county auditor shall certify the 1,214
amount of the excess to the treasurer, who shall enter that 1,215
amount on the real and public utility property tax duplicate 1,216
opposite the property; the amount of the excess shall be payable 1,217
31
at the next succeeding date prescribed for payment of taxes in 1,218
section 323.12 of the Revised Code. 1,219
Section 2. That existing sections 5709.61, 5709.62, 1,221
5709.63, 5709.631, and 5723.06 of the Revised Code are hereby 1,222
repealed.
Section 3. As used in this section, "qualified property" 1,224
means real and tangible personal property that satisfies the 1,225
qualifications for tax exemption under the terms of section 1,226
3313.44, 5709.07, 5709.08, 5709.10, 5709.12, 5709.121, or 5709.14 1,227
of the Revised Code. 1,228
Notwithstanding section 5713.081 of the Revised Code, when 1,230
qualified property has not received tax exemption due to a 1,232
failure to comply with Chapter 5713. or section 5715.27 of the 1,234
Revised Code, the owner of the property, at any time on or before 1,235
six months after the effective date of this section, may file 1,236
with the Tax Commissioner an application requesting that the 1,237
property be placed on the tax exempt list and that all unpaid 1,238
taxes, penalties, and interest on the property be abated.
The application shall be made on the form prescribed by the 1,240
Tax Commissioner under section 5715.27 of the Revised Code and 1,241
shall list the name of the county in which the property is 1,242
located; the property's legal description; its taxable value; the 1,243
amount in dollars of the unpaid taxes, penalties, and interest; 1,244
the date of acquisition of title to the property; the use of the
property during any time that the unpaid taxes accrued; and any 1,245
other information required by the commissioner. The county 1,246
auditor shall supply the required information upon request of the 1,247
applicant.
Upon request of the applicant, the county treasurer shall 1,249
determine if all taxes, penalties, and interest that became a 1,250
lien on the qualified property before it first was used for an 1,251
exempt purpose and all special assessments charged against the 1,252
property have been paid in full. If so, the county treasurer 1,253
shall issue a certificate to the applicant stating that all such 1,254
32
taxes, penalties, interest, and assessments have been paid in 1,255
full. Prior to filing the application with the Tax Commissioner, 1,256
the applicant shall attach the county treasurer's certificate to 1,257
it. The commissioner shall not consider an application filed 1,258
under this section unless such a certificate is attached to it. 1,259
Upon receipt of the application and after consideration of 1,261
it, the Tax Commissioner shall determine if the applicant meets 1,262
the qualifications set forth in this section, and if so shall 1,263
issue an order directing that the property be placed on the tax 1,264
exempt list of the county and that all unpaid taxes, penalties, 1,265
and interest for every year the property met the qualifications 1,266
for exemption described in section 3313.44, 5709.07, 5709.08,
5709.10, 5709.12, 5709.121, or 5709.14 of the Revised Code be 1,269
abated. If the commissioner finds that the property is not now
being so used or is being used for a purpose that would foreclose 1,270
its right to tax exemption, the commissioner shall issue an order 1,271
denying the application.
If the Tax Commissioner finds that the property is not 1,273
entitled to tax exemption and to the abatement of unpaid taxes, 1,274
penalties, and interest for any of the years for which the owner 1,275
claims an exemption or abatement, the commissioner shall order 1,276
the county treasurer of the county in which property is located 1,277
to collect all taxes, penalties, and interest due on the property
for those years in accordance with law. 1,278
The Tax Commissioner may apply this section to any 1,280
qualified property that is the subject of an application for 1,281
exemption pending before the commissioner on the effective date 1,282
of this section, without requiring the property owner to file an 1,283
additional application. The commissioner also may apply this
section to any qualified property that is the subject of an 1,284
application for exemption filed on or after the effective date of 1,285
this section and on or before six months after that effective 1,286
date, even though the application does not expressly request 1,287
abatement of unpaid taxes.